Negotiation Styles: THE UNITED STATES And India

This research study explains the negotiation style between US and Indian company. Negotiation is about building market for a US centered companies product in India. this research study is written to give better understanding of what's negotiation and how culture background influences it on the negotiation process. This research study shows what sort of packaged form manufactures from India has established itself on the market and exactly how much competitions a new company has to face to established its product and for the reason that process how an Indian company can help them. Because of this a successful relationship and great deal should be made. I've also provides some recommendations which are to be followed to get a successful negotiation.

I am employed in US based packaged food manufacturing company. My company is interested in making a package with one of the firms in India for releasing its products in Indian market. For a successful business deal to occur and to get success in the market there is have to have a negotiation between your two companies. Company has determined me as the negotiator on behalf to the business in the negotiation as I've some understanding of the India commercial and sociable sector.

U. S is a multi-cultured, advanced in technology and a developed company. And India is multi-cultures, producing in both financial and technical sectors but with an enormous capacity of human resources.

Overview Of Situation

With vast human population base, growing middle class population, Indian food market has emerged as swiftly growing industry. A packaged food industry has been demonstrating increase swiftly as change in lifestyle. Researches' say that there surely is an anticipated development of CAGR of 8% during 2008-2012. Snake grocery store growth is expected to expand by 18% to 20% in coming years.

India is a potential marked for instant, packed or fast foods. A couple of more than 500 verities of food with can be proclaimed in this sector. Many international companies have introduced their products and so many more want to present their products in India. Not merely international but even there are some Indian companies who are incredibly successful in this matter. Haildiram's is one particular company. Company's estimated turnover is Rs 400 corers and its own personal proclaimed brand value is of Rs 1500 corers. There designated is not just limited to India but there products reach various areas of the term.

Before negotiation styles of both countries why don't we get some basic information about negotiation and negotiation styles.

Negotiation

Whets negotiation and Negotiation styles that they affect a small business deal?

Negotiation is the procedure where several people or group of people try to fix a difficulty to make it profitable to both respective individual and group participating in the negotiation. Negotiation is a process but not a single skill, to get this get better at negotiation there will vary skills to be looked at.

Negotiation can take please in between individuals, at cooperate level or even at diplomatic levels. In general negotiation can take places when there may be some task to accomplish where both the parties are involved and the necessity to come to a agreement on varies subject involved in that subject as the task cannot be completed without mutual co-operation. An excellent negotiation calls for pleases such that both parties interests are considered.

Negotiation can also be done in issues resolution. Seven primary involved with negotiation

There are several parties involved with achieving a interest.

Although there is a common interest by all the celebrations but with a amount of differences which at first prevent from attaining the normal out come.

At least at the initial talk about all the parties consider that negotiation pays to than any other alternative.

Each party considers that t can convince the opponent using their terms which is not always easy. But negotiation has positive attitude and which to affects each others.

Both parties maintain hope to get the most possible positive final result even at a predicament proves unattainable.

Each get together has some influences or has power over the opposition.

Negotiation process itself an activity in connections.

By considering all these negotiation can be explained as follows

"The procedure in which, several group of folks try to fix a job of common interest with some moderate differences, to attain a mutually acceptable decisions. "

Is negotiation necessary?

One of the aspects of negotiation is to decide whether there is a requirement of negotiation. By requesting in case a negotiation is necessary you'll be able to save from some unneeded compromise. The very best alternative to a negotiation is to ask Yes or No, i. e. if any distinctions in thoughts and opinions occurs, should it skip the negotiation and check out the third get together intervention

A good standard rule is: Do not work out till you have to or unless you can buy some direct or indirect edge by doing.

Skills Involved In Successful Negotiation

Negotiation involves creative thinking, so it can be viewed as as a kind of art. A set in place of

skills are necessary for a possible negotiation. These are the following

Awareness.

Patience's.

Communication Skills.

Awareness is necessary

A thorough understanding of the backdrop of the negotiation issue is necessary. About the tensions and the feelings involved by both the celebrations is also quite definitely required.

A negotiator should be aware of the hypersensitive to the needs and interest of the opponent parties. Can interpret by the body language and really should have the ability to tackle the opponent's techniques.

Patience is necessary

A successful negotiator should be very patient as the presses of negotiation, is very frustrating. Patience is a vital factor during as it takes so a lot of a chance to break the barriers.

It's not always necessary that the opponents speak what we want or how we want these to speak they may not make us convenient in such conditions we have to be about able to be patient enough to make the negotiation successful.

Communication Skills is required

A communication skill is very essential part as two-way process is required.

Listen skills is required as lot of listening is involved with a negotiation, as to get a merchant account of the data from the opponent. A very good speaking skill is necessary as the negotiator must require in the conversation exhibit one's own viewpoint over the others.

Phenomenon of Negotiation

Basic occurrence of negotiation sits between win and loss. Negotiation can be either concessive, cooperation or competitive.

Concession : Considering of others.

When passions of the opponents are given priority then once own interest. Considering for other will scarcely is determined by once self values and notion on others, values means the facts, derives of how one believes and behaves on a specific situation.

This is a lose-win condition

Collaborative : The Mid-way.

This is based on between of the home interest and opponents interest's. Constant posting or process in which both the people try to get benefits maximum but make an effort to do come adjustment so as to cooperate with opponent as will.

This is a win-win condition.

Competition : Considering of home.

Negotiator who things about once interest only and will not care about your partner or the relationship. Where priority is about once interest opponent's fact and interests aren't considered, over extreme, deterrence, playing stunts are considered normal and necessary.

Symbol of win is considered opponent's is defeated. This is win-loss condition.

Process INVOLVED WITH Negotiation
A successful negotiation consists of a phases to be used. The key phases involved with negotiation are the following

Preparation Stages : through planning before negotiation commences.

Actual negotiation Process : The conversation leading to agreement on an result.

Implementation Stage : A level sometimes is where the outcome is carried out, but sometime given inadequate attention.

Negotiation need to be prepared. About the comparative power of the functions and the arranging objective of negotiation.

Two main questions are to be asked that will decide in the further process

What's the true concern to be resolved?

Which functions to be involved in negotiation?

By asking these two questions it will be clear about issues and with whom to work together. This gives a clear picture about the outcome of negotiation.

Actual negotiation accurse following the first stage of planning. During negotiation process what al will happen can be easily explained in six levels. These are as supporters

Defining the issues : the functions agree in what is to be negotiated.

Defining the initial levels : Each aspect arranged its criteria's of what it looks for. Opponent's aspect calms its point and the opposite party offers its initial reactions.

Thing about the original positions : this is a far more open stage when the original replies or passions of the get-togethers are tested in argument.

Tentative Exploration : Then your parties try to discover the possible adjustment that can be made to get a possible result.

Formal Proposal : A formal proposal an final result suitable by the gatherings is made mentioned and customized.

Final Contract : A final agreement comes from described and conclude.

The arrangement which will not give much infuses on the implements will most likely collapse soon after they have concluded. Propose of the negotiation is to attain an agreement so it must implement some positive action.

Steps stopping from implementation inability

Conforming on paper in what is decided.

Ensure each get together to do the function allotted to it. Clear picture about who has to do what is to be included in the execution programmer.

Conform that many people are informed about the contract, what it signifies and what action it practices.

Negotiation style

Negotiation style is dependent mostly with respect to the individual person. Depends on once beliefs and skills and culture to which they participate in.

Culture is the most influencing factor in a negotiation, especially where there are

the parties involved in discussion are from two different countries.

Cross Cultural Negotiation

How does a culture have an effect on negotiation styles?

To make any successful deal between any two countries, there some types of negotiation have to occur. Folks of different ethnical have to sit together and talk about opinion of common interest. Cross social negotiation is not merely about closing a package. It affects all the factors affecting the next proceedings.

Some of the things which result cross ethnical negotiation receive below

Eye Contact : In general in some cultural direct eye contact conveys confidents and sincerity. In other ethnical it's considered trust worthiness and in others it's rude and generally avoided.

Personal Space And Touch : In a few cultural a distances is managed in a formal circumstance. Touching only will take places between friends and family members however in some ethnic they try to come better in formal appointment.

Time : Some ethnicities are very time conscious for the kids time is money and punctuality is crucial. In some ethnic if people turn up later it's considered insult. Plus some others are not a matter of stress.

Meeting & Greeting : Most recognized meeting start with a handshake.

In some countries handshake is not suitable between complete opposite gender. Even the way

handshake is given is also considered in different ways in several countries. Something a company handshake as weakness and on many others firm handshake is known as aggressive.

Then how people should be resolved is also a matter of consideration. To work with weather the

first name, middle name or last name.

Till now we have gone through what exactly are negotiation and various negotiation style and thing effecting factors on negotiation style.

United States of America and India are two countries form extremely different ethnic background. A study about the talents, weakness, Opportunities and hazards involved with these countries is to be considered to make a negotiation to reach your goals.

SWOT ANALISIES

Comparing the united states and Indian Negotiation Styles. The desk below shows some of the factors in of the respective negotiation styles.

US Negotiation Style

Indian Negotiation Style

Preparation &Planning Skills

Preparation &Planning Skills

Thinking under pressure

Win Value &Confidences

Judgement & Intelligences

Judgement & Intelligences

Verbal Expressiveness

Persistence &Determination

Product Knowledge

Product Knowledge

Perceive &Exploit power

Interesting

Integrity

Will to bargain

STRENTHS :

There are extremely good possibilities of making a successful negotiation between US and Indian Combination cultural negotiation. Building a company with Indian company will create great deal of opportunities to the united states company in making their products open to the Indian market.

Negotiating between US and Indian companies will be a well formatted. The desires and issues will be shown in a good manner as both the negotiators will do unmatchable planning and planning prior to the real negotiation so that all the required aspects will be considered. Decisions made will be very wise and view on each issues will be presences about with is the exact requirement. Both parties try to get the utmost production knowledge consequently you will see very little need to put in time describing about the merchandise and exactly how and what it's like, saves time.

US negotiation style says that they must be in a position to be integrity and should have the ability verbally expressive, this quality provides strength expressing the problems and views in a highly effective manner. Integrity is another aspect on US negotiation all the moral codes or the morals are purely followed this give a clear picture of the structure.

Indian negation styles try to make relationship, winning admiration and confidences will help in making a romance which is power as to make the deal have the ability to be a successful because a positive environment and trust is created. If the offer exhibited is interesting nothing can stop from accepting it for an Indian negotiator because it is the important to do any work to Indian work cultural.

WEEKNESS :

Both the US and Indian cultural involve some of the futures which can provide negative

Impacted on the negotiation process, it can time business lead to a negotiation failing. Some factors

which are considered are talents can also act as weakness.

US negotiation style will not give much importance in capacity of bargaining where as

India negotiators are useful in bargaining this give Indian negotiator to bring the offer in to

there palm which is not satisfactory, it's a loss to the counterpart.

Indian negotiator it's difficult to find verbal expressiveness this is a fallback, as its

already advised US negotiation style involved a very effective verbal power this may take the

negotiation into the other side's palm will bring about failures in the Indian viewpoint.

Indian culture gives them the capability to learn new thing this is durability to Indian

Negotiation however in US viewpoint it is rather difficult so that it becomes a weakness they are able

to give the knowledge or struggling to learn new thing as easily as there counterpart do. Its better if

these weaknesses are kept in mind to improve the negotiation to reach your goals.

OPPROTUNITIES :

The proportion that the mix cultural negotiation between your countries of US and India will be

a success is more. This is because that the both countries are multi-cultured countries and have

some understanding of the opposites negotiation style this increase the possible that the

negotiation is efficiently.

Indian is a fast growing country which is greatest democratic country. Indian has the

population greater than 100 millions. The prospect of the merchandise to reach your goals because India

is a growing country, lifestyle of India is changing this is because of globalization

people different parts of the earth are active and various multi-national companies

have already proven in Indian and their products are successful. The probabilities that the

introduction of new product will never be tough job but you will see different competition as will

who have made entries in to the country's market long back again the will make be strong competition.

THREATS :

There are situation that the negotiation can be failing. This happens when the two

parties do not come to a summary on something or concern. Then it's said to be a

failure. This may time happen because of unable to understand what the opposition parties

negotiation style.

US negotiators have the capacity to thing under presser capacity where as Indian

negotiation style will not give that focus on this accept which this is considered as a

threat to Indian companies negotiator.

Indian negotiators are considered to be very determinant and persistence this will create a

threat as they'll restrict from doing any amendment within offers in such instances it will become

treat to the negotiation.

Recommendation

The negotiation should be with the account that the business enterprise deal is usually to be done with

extremely new country with different ethnical, environmental, politics and financial background.

If an effective business is usually to be proven with an Indian company some of thing should be

tried while negotiating they are as follows.

It's very important that Indian company sees that US company is very much trustworthy

else they don't be enthusiastic about performing a business deal. It is very impotent that a friendly

relationship is built in odour to make package successful we can easily see this from many India

companies make only handles only know people, they not encourage a just formal

relationship.

Bargaining is another interesting fact, folks from India tend to bargaining a great deal and if

they do not get much to do that its felt the offer is not positive scenario must be created for

bargaining.

Forecasts And Effects

The prospects that a successful business deal can be made between two countries like India and US are extremely high.

As a result of the negotiation its will be a clear and organized agreement and will lead in

a mutual collaborative business.

The Indian company know about the marketplace and the hobbies of the common man

this knowledge can be utilized for the better potential clients of the product launch.

Referancess

Negotiation Skills AND Strategies- By Alan Fowler

Culture-Based Negotiation Styles-By Michelle LeBaron

Negotiation-an importent life skill-By www. pjonline. com

Negotiation- By Michelle Maiese

http://www. buzzle. com/editorials/10-5-2004-60126. asp

http://www. hrdq. com/products/nsp. htm

http://ezinearticles. com/?National-and-Cultural-Negotiation-StyleHYPERLINK "http://ezinearticles. com/?National-and-Cultural-Negotiation-Style&id=33189"&HYPERLINK "http://ezinearticles. com/?National-and-Cultural-Negotiation-Style&id=33189"id=33189

http://changingminds. org/disciplines/negotiation/styles/styles. htm

http://findarticles. com/p/articles/mi_qa3923/is_200302/ai_n9224490/

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